TMI Blog2019 (6) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... ;s own case order dated 27.05.2016 (supra). We do not find any error, much less an error of law, said to have been committed by the Tribunal in passing the impugned order. We see no good reason to disturb the same. - R/TAX APPEAL NO. 81 of 2019 - - - Dated:- 18-6-2019 - MR J. B. PARDIWALA AND MR A. C. RAO, JJ. For The Appellant (s) : MRS KALPANA K RAVAL For The Opponent (s) : MR DARSHAN R PATEL ORAL JUDGMENT ( PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1. This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, 'the Act'), is at the instance of the Revenue and is directed against the order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smissed. 5. Being dissatisfied with the order passed by the CIT(A), the Revenue as well as the assessee preferred their respective appeal before the Appellate Tribunal. The Appellate Tribunal, vide its common order dated 31st August 2018, dismissed the appeal of the Revenue, whereas allowed the appeal of the assessee. 6. In such circumstances referred to above, the Revenue is here before this Court with this Appeal. 7. With regard to the unverified sundry creditors, the Assessing Officer held as under : The assessee was given almost sufficient opportunity to prove the genuineness of outstanding sundry creditors, but failed to prove his claim for outstanding current li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se sundry creditors but only submitted copy of account of the next year showing therein that the balances outstanding has been paid in the next year and claimed that this is sufficient evidence to prove the genuineness of the creditors. I have gone through the copy of accounts of the sundry creditors filed by the AR of the appellant during the appellate proceedings and found that all the payments has been made in cash and ranges between ₹ 18,000/- to ₹ 19,000/- on a continuous manner. It belies the contention of the AR of the appellant that the payment has been made in the next year as and when these were received from the paper mill. It is strange to note that if the payments from the paper mills has been rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enior standing counsel appearing for the Revenue, vehemently submitted that the Tribunal committed an error in interpreting Section 68 of the Act. The learned counsel would submit that the Tribunal committed an error in directing the Assessing Officer in deleting the addition. The learned counsel submitted that although the assessee was given an opportunity to prove the genuineness of sundry creditors, yet no evidence was led in that regard. The learned counsel submitted that in such circumstances the Assessing Officer as well as the CIT(A) were justified in treating the entire amount of sundry creditors as cash-credit and rejected the same under Section 143(3) of the Act. The learned counsel pointed out that the same was added back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal argument of Mr.Patel is that the Assessing Officer, having once rejected the books of accounts, could not have made further additions by relying upon the same books. The Assessing Officer ought to have estimated a reasonable profit of the assessee considering the history and nature of business. Mr.Patel pointed out that the CIT(A) took notice of the fact that the Assessing Officer had already made addition of net profit @ 2% of the turnover. In such circumstances, the amount of ₹ 1,17,31,334=00 could not have been added relying on the same books of accounts which were rejected under Section 145(3) of the Income Tax Act. Mr.Patel pointed out that this aspect has been well-considered by the Tribunal. 13. Mr.Patel, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer. Briefly stated the facts of this issue are that the appellant is engaged in the business of trading in waste paper. Besides this, the other items traded are scraps like core pipe, duplex craft waste, paper tube and the like unusable products as disposed off by the end users. As these items are purchased from small time vendors popularly known as Raddiwalas who are mostly illiterate and belong to the lower strata of the society. Their transactions are mostly in cash due to the nature of their work. The appellant is a mediator between the Raddiwalas and the paper mills. As and when the stock of waste papers, etc. piles up, the same is sold to different paper mills on the rates determined by the group of paper mills. Similar issue also cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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